section 163 (j)(4)(A)(i) - Spidell

section 163 (j)(4)(A)(i)

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Message Board section 163 (j)(4)(A)(i)

This topic contains 0 replies, has 1 voice, and was last updated by Joni Kelly 9 months, 2 weeks ago.

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    Joni Kelly

    Hello Spidell:  I have a partnership return that shows very little income and a sizeable interest expense deduction derived from funds borrowed to buy inventory a number of years ago. The partnership is winding down and plans to go out of business.  There are only 2 partners and the gross receipts are nowhere near 25 million.  Do I understand correctly that the deductible interest expense will be limited at the partnership level, by 30% of the net business income? (amongst other things)  Does the 1065 have to file form 8990? (which Lacerte does not offer yet) Does this effectively mean that the K-1s will show a dramatic decrease in net partnership loss?  The interest expense is now the partnership’s largest expense.  Thank you so much for any guidance that you can provide.

    Joni Kelly